Cryptocurrencies reach a market capitalization of $ 3 trillion as bitcoin reaches a new all-time high

The high volatility of cryptocurrencies was again shown when the top four cryptocurrencies came together to reach a new $ 3 trillion market capitalization, Bloomberg reported. Between April and July this year, the value of bitcoin fell by almost 50 percent and in just a few months has reached its highest value of all time.

It was in August this year that cryptocurrencies reached market capitalization of $ 2 trillion. In less than three months, these coins have added another $ 1 trillion to their market value. That’s how the carmaker Tesla was judged, after spending nearly two decades making electric cars that could possibly drive you autonomously around town one day.

The journey to this new peak was not smooth. After being banned by China, the cryptocurrency, bitcoin, found a new home in El Salvador, and interest in other cryptocurrencies such as Shiba Inu is also growing. New applications of blockchain technology, such as irreplaceable tokens (NFT), are already supported, with supporters such as Jack Dorsey even predicting social media to be based on blockchain in the future.

Against the backdrop of growing interest, cryptocurrencies have largely moved up over the past few months. The rally is aided by software upgrades to the cryptocurrency networks, which will bring significant changes in the way they can be used. According to Report on CNBCAt the end of last month, Ethereum, a platform that allows users to create their own cryptocurrencies, updated the way transactions are validated on the platform.

Typically, cryptocurrencies use a proof of performance system to validate transactions on their network. These validations are becoming more complex as more cryptocurrencies become available, making them energy intensive. As electricity generation in most countries is still carried out using fossil fuels, cryptocurrencies are not considered environmentally friendly. However, with the new update called Altair, the Ethereum platform switched to using the “proof of bet” system to validate transactions. In doing so, the user must show existing ownership of ethereum coins to confirm a new transaction and win prizes. This way of validating transactions is more stable.

Even the old cryptocurrency, bitcoin, is expected to undergo a software update that will unlock smart contracts on the platform. The new feature is expected to improve transaction confidentiality as well as efficiency, CNBC reported. On Monday, bitcoin reached its highest level of $ 67,700, while ether crossed $ 4,800 for the first time. Other cryptocurrencies, Solana and Cardano, have also risen 23 percent and nine percent, respectively, over the past week.

Investment bank JP Morgan Chase predicts that the value of bitcoin will jump even more and reach $ 73,000 in the short term.

Disclaimer: Some members of the IE team, including the editors of this article, have personally invested in a number of cryptocurrencies and stock markets. However, their views on private investment do not affect editorial content.

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